MTNL Merger Plans
On February 23, 2015, a date in future, The Department of Telecommunications (DoT) said it wanted to revive a proposal for the merger of state-owned operators BSNL and MTNL. In its draft plan, the department while showing concern over the deteriorating performance of BSNL and MTNL said that BSNL and MTNL should be merged as they have complimentary operations and can combine their strengths for synergies. DoT said the government should set up a multi-stakeholder committee to develop a restructuring plan for both firms. The committee should have members from public enterprises, the DoT, department of IT and ministry of finance. However the BSNL's staff unions are opposing this merger tooth and nail realising that MTNL is in dire state and need help of its big brother, BSNL, to alleviate itself from getting into red balance sheet. MTNL in spite of having its operations in two big metro cities viz. New Delhi & Mumbai is realising cascading fall in revenue and profits for the past 10 successive years. The telecommunication operators should focus on enterprise business, services to government and the public sector, value-added services and technologies like 3G, the department recommends.
Read more about this topic: Bharat Sanchar Nigam Limited, BSNL
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